Bitcoin's price has surged approximately 14% this month, reaching $78,127.13, yet the perpetual futures market is showing a negative funding rate, indicating a divergence from the spot market. This anomaly is attributed to institutional hedging rather than a lack of confidence in Bitcoin's rally. Markus Thielen of 10x Research suggests that the negative funding rate reflects structural changes due to increased institutional participation.
The 30-day average funding rate is currently at negative 5%, a significant deviation from the historical norm of positive 8%. Thielen identifies three main sources of short pressure: hedge fund redemptions, institutional trades involving Strategy (MSTR) shares, and Bitcoin miners pivoting to AI. These activities involve shorting Bitcoin futures as a hedge, representing risk management strategies rather than bearish sentiment.
Bitcoin Futures Funding Rate Turns Negative Amid Institutional Hedging
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
